Harassment Accusations Against Elon Musk Send Stocks Down By Investing.com



Investing.com – Tesla (NASDAQ:) stock hit a nine-month low on Friday as the feud between CEO Elon Musk and the media escalated.

Tesla stock fell 6.42% to $663.90 at last night’s close, losing 46% from its October high. However, its price remains up 18x since 2019 and continues to trade at valuations that few, if any, stocks have sustained for long periods.

Musk responded angrily via Twitter on Friday morning to a Business Insider report, which reignited historic sexual harassment allegations against him by an employee of SpaceX, Musk’s second most valuable company.

BI reported that SpaceX paid $250,000 to settle these allegations. On Friday, Mr Musk said on Twitter that the ‘wild accusations’ leveled at him were ‘totally false’ and part of a left-wing agenda to discredit him and force him to drop his offer to buy Twitter (NYSE:).

“Their only goal was to pull off a bang to interfere with the acquisition of Twitter. History was written before they even spoke to me,” Musk said.

The Tesla boss then tried a touch of humor, taking up one of his tweets from March 2021 in which he suggested the term “Elongate” if a scandal ever touched him:

Last night, Elon Musk then left humor aside to take a more combative stance in a series of tweets, in which he notably announced the creation of a legal team that he wants to “harcore”:

Recall that the BI article revealing the scandal was published the same week that S&P Global removed Tesla from an ESG-themed benchmark due to repeated incidents of racial discrimination at the automaker’s factories.

Owen Diaz, who worked at the plant for nine months in 2015 and 2016, said other workers used racial slurs when addressing him, and scribbled swastikas and slurs , including the “word N”, on the walls of the bathrooms.

Over the past decade, Tesla has been arguably the world’s most high-profile environmental action, attracting billions of dollars from investors who have bought into its mission to reduce carbon emissions from vehicles. However, its failures on the other two pillars of the ESG platform – social and governance issues – have put it at risk of being excluded from indices that today manage trillions of dollars.

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